The Carlyle Group, one of the world’s largest private equity funds, may soon acquire the $2 billion government contracting business of consulting giant Booz Allen Hamilton, one of the biggest suppliers of technology and personnel to the U.S. government’s spy agencies. Carlyle manages more than $75 billion in assets and has bought and sold a long string of military contractors since the early 1990s. But in recent years it has significantly reduced its investments in that industry. If it goes ahead with the widely reported plan to buy Booz Allen, it will re-emerge as the owner of one of America’s largest private intelligence armies.

Reports of a potential Carlyle acquisition of Booz Allen’s government unit began circulating among U.S. military contractors in December 2007, after Booz Allen’s senior partners and board members – a group of 300 vice presidents who own the privately-held firm – gathered at company headquarters in McLean, Virginia, for an extraordinary two-day meeting.

The United States is clandestinely funding militant groups within Iran’s borders to destabilize the country, The Daily Telegraph says.

According to the daily, CIA officials are secretly funding militias among the numerous ethnic minorities clustered in Iran’s border regions in order to mount pressure on the country to give up its nuclear program.

19/02/08 “Washington Post” — — In the predawn hours of Jan. 29, a CIA Predator aircraft flew in a slow arc above the Pakistani town of Mir Ali. The drone’s operator, relying on information secretly passed to the CIA by local informants, clicked a computer mouse and sent the first of two Hellfire missiles hurtling toward a cluster of mud-brick buildings a few miles from the town center.

The missiles killed Abu Laith al-Libi, a senior al-Qaeda commander and a man who had repeatedly eluded the CIA’s dragnet. It was the first successful strike against al-Qaeda’s core leadership in two years, and it involved, U.S. officials say, an unusual degree of autonomy by the CIA inside Pakistan.

Having requested the Pakistani government’s official permission for such strikes on previous occasions, only to be put off or turned down, this time the U.S. spy agency did not seek approval. The government of Pakistani President Pervez Musharraf was notified only as the operation was underway, according to the officials, who insisted on anonymity because of diplomatic sensitivities.

Officials say the incident was a model of how Washington often scores its rare victories these days in the fight against al-Qaeda inside Pakistan’s national borders: It acts with assistance from well-paid sympathizers inside the country, but without getting the government’s formal permission beforehand.

It is an approach that some U.S. officials say could be used more frequently this year, particularly if a power vacuum results from yesterday’s election and associated political tumult. The administration also feels an increased sense of urgency about undermining al-Qaeda before President Bush leaves office, making it less hesitant, said one official familiar with the incident.

Independent actions by U.S. military forces on another country’s sovereign territory are always controversial, and both U.S. and Pakistani officials have repeatedly sought to obscure operational details that would reveal that key decisions are sometimes made in the United States, not in Islamabad. Some Pentagon operations have been undertaken only after intense disputes with the State Department, which has worried that they might inflame Pakistani public resentment; the CIA itself has sometimes sought to put the brakes on because of anxieties about the consequences for its relationship with Pakistani intelligence officials.

In testimony before the Senate Select Intelligence Committee, Director of Central Intelligence Mike Hayden admitted to using contractors for “enhanced interrogation” at the CIA’s secret prisons, the so-called black sites. It was an issue first raised last summer on The Spy Who Billed Me. From Tuesday’s exchange:

FEINSTEIN: I’d like to ask this question: Who carries out these [enhanced interrogation] techniques? Are they government employees or contractors?

HAYDEN: At our facilities during this, we have a mix of both government employees and contractors. Everything is done under, as we’ve talked before, ma’am, under my authority and the authority of the agency. But the people at the locations are frequently a mix of both — we call them blue badgers and green badgers.

FEINSTEIN: And where do you use only contractors?

HAYDEN: I’m not aware of any facility in which there were only contractors. And this came up…

FEINSTEIN: Any facility anywhere in the world?

HAYDEN: Oh, I mean, I’m talking about our detention facilities. I want to make something very clear, because I don’t think it was quite crystal clear in the discussion you had with Attorney General Mukasey.

LONDON, February 7 (IranMania) – The top US intelligence official is backing away from his agency’s recent assessment that Iran halted its ‘nuclear weapons program’, PressTV reported.

Sixteen US spy agencies concluded in their December 3 National Intelligence Estimate that Iran is not conducting a nuclear weapons program.

At a Tuesday hearing of the Senate Select Committee on Intelligence, Director of National Intelligence Michael McConnell said he wishes he had written the unclassified version of the document differently.

“I would change the way we describe the Iranian nuclear program. I would have included that there are the component parts, that the portion of it, maybe the least significant, had halted,” he said.

The intelligence director was referring to a specific aspect of the NIE report which dismissed White House allegations that Iran is planning to design nuclear warheads.